Biden to Invest $1.6B in Texas Instruments for Semiconductor Production

The Biden administration has announced a significant investment of $1.6 billion in Texas Instruments (TI) to enhance U.S. semiconductor production capabilities, particularly focusing on "mature node" chips. This funding, part of the CHIPS and Science Act, aims to support the construction of three new semiconductor fabrication plants (fabs), including two in Sherman, Texas, and one in Lehi, Utah. The initiative is a response to the ongoing shortage of essential 300mm wafer chips, which, while not cutting-edge, are crucial for various applications across multiple sectors of the economy. Commerce Secretary Gina Raimondo and TI CEO Haviv Ilan emphasized the importance of these investments in addressing the semiconductor shortages that have plagued the U.S. economy, particularly during the COVID-19 pandemic. Raimondo noted that the lack of mature node chips has contributed to inflation and compromised national security. The CHIPS Act, enacted in 2022, aims to incentivize domestic semiconductor manufacturing to strengthen supply chains and enhance economic resilience. Mature node semiconductors, which are prevalent in telecommunications, computing, automotive, and cloud equipment, are projected to account for about 24% of unmet semiconductor demand by 2027. The automotive industry has been particularly affected, with some manufacturers temporarily halting production due to chip shortages. TI plans to increase its 300mm manufacturing capacity in the U.S. by over 95% by 2030, ensuring a reliable supply of these critical components for the future.